At £8, quantity demanded is 900 and quantity supplied is 1,100. At £6, quantity demanded is 1,000 and quantity supplied is 1,000. If the current price is £8, which process is most likely?
A shortage pushes price above £8
Equilibrium quantity falls to 900
A surplus puts downward pressure on price towards £6
Producers raise supply until 1,100 units are demanded
75 exam-style questions on OCR GCSE Economics 2.4 Price, covering 2.4.1 Price and distribution of resources, 2.4.2 Equilibrium price and quantity, 2.4.3 Draw the interaction of demand and supply, 2.4.4 Analyse the interaction of demand and supply, 2.4.5 Role of markets in allocating resources, and 2.4.6 Market forces and equilibrium. Each one has a worked solution and a mark scheme showing where the marks go.